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Changing tax regime within the same year

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Amshumali Sharman

66 Points Posted on 07 February 2024

An employer has been deducting TDS on the basis of old regime for the previous three quarters. But in January, calculation made by the accountant shows that the new regime is beneficial for most of the employees, even after the consideration of the deductions allowed under the old regime. Are employers permitted to change the basis of tax deduction within the year, from old to new, or is it like the employer has to follow only one regime for the whole year (and the employee can get refund if he wants, after filing taxes)?

Replies (7)

Quick Summary

This discussion explores whether an employer can change the tax deduction regime from the old to the new within the same financial year. It clarifies that employers generally cannot unilaterally switch the basis of TDS deduction. However, employees can opt for the new regime, often requiring their explicit consent and communication with the employer. The employee can then claim any refund when filing their tax return if the new regime proves more beneficial.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 07 February 2024

Then Changes can't by employer.

In case Employees required the change and said to employer then employer can compute as new regime.

But,
If employee already follow old regime then he want to change new scheme with filing of form 10IE